The Cost of Food and Energy Across Consumers

Abstract

Rising food and energy prices have been getting considerable attention recently. The latest report from the Bureau of Labor Statistics (BLS) shows that both of these components of the CPI outpaced the average for the index. Energy rose by 2.1 percent (7.3 percent year-over-year), which is consistent with its longer trend over the past six months. Curiously, given the focus it has received, the rise in food prices has been much more modest, just 0.5 percent (1.8 percent year-over-year). In particular, “food at home,” which excludes changes in the price of dining out, rose by only two-tenths of a percent more than overall food prices (0.3 percent more year-over-year). In fact, food at home is up only 2.7 percent from its lowest point in the past two years. Meanwhile, the CPI rose 0.4 percent in January, implying a 1.6 percent annual increase in the broad measure of prices.